Unlikely Allies: Why Global Development Concerns Us All

Over the past few decades, the global development landscape has significantly evolved. Addressing pressing issues such as poverty, inequality, environmental sustainability, and other socio-political challenges is no longer the exclusive responsibility of governments or NGOs. Instead, dynamic alliances and ecosystem-driven development partnerships that unite the resources and expertise of public institutions, private companies, civil society, and local communities are emerging. By working together and leveraging their collective strengths, these partnerships create innovative, collaborative solutions that drive sustainable, long-lasting change and help achieve shared development goals.

Text: Eunice Mwaura

Operating across multiple geographies, including Nigeria, The Palladium Group exemplifies this ecosystem-driven approach and is committed to fostering social and financial impact. As Nicholson Oiza, The Palladium Group’s Nigeria Country Director, explains, the organisation is dedicated to ‘creating positive impact—one that is financially rewarding and delivers social impact.’

She describes Palladium’s vision as striving ‘to be the most impactful business on the planet,’ reflecting its commitment to driving transformative, sustainable change. Central to their work is a focus on partnerships and an ecosystem-driven approach. This strategy moves beyond traditional intervention models, emphasising a network of interconnected stakeholders, including the private sector, to achieve sustainable outcomes.

As Oiza explains, the private sector plays a critical role in funding, scaling solutions, and ensuring long-term impact. ‘For too long, the private sector was seen as peripheral to development, but the truth is, they are central. Their innovation and ability to create sustainable systems are game-changing.’

This collaborative model breaks systemic barriers and unlocks opportunities for progress by aligning incentives across sectors—private, civil society, financial institutions, and government. A standout example is the Spring Business Accelerator Programme, spanning nine countries in East Africa and Southeast Asia.

Funded by the Australian, United States, and United Kingdom governments, the programme supported businesses in developing products and services that drove economic growth while delivering meaningful social impact. For Oiza, it exemplifies how an ecosystem-driven approach aligns diverse stakeholders to create lasting value.

Gender-Inclusive Approach

She highlights the programme’s deliberate focus on creating opportunities for women and girls while embedding gender-responsive principles across various industries. Rather than exclusively targeting women-focused enterprises, the initiative worked to integrate these principles into broader ecosystems.

In one instance, the team collaborated with a personal safety training provider to adapt its services for schools. ‘We did some research, looked at the broader ecosystem, and understood how their unique service offering could be targeted at schools for girls,’ Oiza explains. The result was transformative: the business expanded financially and created safer spaces for young girls.

The programme also emphasised tailored, demand-driven support. Businesses participated in a nine-month boot camp, each phase designed to refine offerings, assess market needs, and scale effectively. ‘The process helped us understand the specific needs of these businesses,’ Oiza notes, ensuring interventions were precise and impactful.

Collaboration was pivotal to its success, reflecting Palladium’s commitment to fostering interconnected ecosystems. By uniting donor agencies, civil society organisations, and private investors, the initiative enabled local actors to address systemic challenges and expand into larger markets.

The focus was on strengthening existing systems, empowering local innovation, and driving transformative, sustainable change. ‘We do not come in and try to create something new unless maybe that is the answer,’ Oiza explains. This approach avoids market distortions and ensures solutions are contextually relevant and demand-driven.

Navigating complex ecosystems presents challenges, particularly the misconception that financial sustainability and social impact are mutually exclusive. ‘Sometimes there is that thinking that you cannot do both,’ she observes. Palladium counters this by showcasing data and successful examples, encouraging stakeholders to adopt models that achieve meaningful outcomes while remaining financially viable.

Another challenge is managing the divergent priorities of stakeholders—governments, private companies, and civil society organisations—each driven by different objectives. ‘Everybody has got different interests,’ she acknowledges. ‘But it is about finding that sweet spot where everybody wins.’ Success lies in finding a balance where all parties benefit.

This is achieved through early stakeholder involvement, context-specific solutions, and a deep understanding of local political and economic conditions. ‘It needs to be context-specific,’ she explains, ‘so you are not designing solutions that work elsewhere in the world without really understanding the political economy.’

The results speak volumes. In the Spring Business Accelerator Programme, eighty percent of the 75 supported businesses remained viable post-project. Many scaled successfully, like Ubongo, a children’s edutainment organisation now operating across regions. ‘We continue to hear great news about the organisations supported,’ Oiza notes, highlighting the programme’s enduring impact.

This underscores the importance of embedding sustainability into development from the start. ‘You think about the end from the beginning,’ she emphasises. ‘How do you want a project to transition on? Then you will not be surprised when it is closing out.’ The same philosophy of ecosystem-driven solutions applies to addressing systemic challenges in agriculture.

In Northern Uganda, where over seventy percent of the population depends on smallholder farming, agriculture is more than a livelihood—it is about survival. Yet, the sector faces intertwined challenges threatening its stability. Farmers struggle to access essential resources like quality seeds, affordable soil testing, and market connections.

Post-harvest losses reach up to thirty percent, undermining incomes and food security. For women, who contribute over seventy percent of agricultural labour, and refugees with limited resources, the impact is even more severe. ‘When you are already vulnerable,’ says Matthew Rupanga ‘even small disruptions—like a delayed rainy season—can wipe out your entire year’s work.’

Mathew Rupanga is the Team Lead of the Climate Smart Jobs (CSJ) programme in Uganda, which spearheads efforts to address these issues. Funded by the UK Government’s International Climate Fund and managed by The Palladium Group, the programme integrates climate-smart technologies, fosters entrepreneurship, and promotes inclusive economic development through market-system solutions. ‘With the increasing vulnerability of our agrarian economy, we have adopted a holistic approach to help smallholder farmers adapt to climate change,’ he explains.

Tech and Knowledge

A cornerstone of CSJ is the adoption of climate-smart agricultural practices, using technology to enhance resilience, productivity, and sustainability. ‘We have been working with the private sector to ensure farmers access the right inputs and technologies,’ he explains. ‘But it is not just about tools—it is about empowering farmers with knowledge and connecting them to markets where they can realise the value of their work.’

Collaboration with stakeholders, including local businesses, financial institutions, and international organisations, has been central to this effort. Rupanga describes their strategy as a process of identifying leverage points for driving systemic change: ‘It is about exploring various approaches until we discover the right method to create a significant impact.’

The Uganda Climate Innovation Fund, a key CSJ initiative, supports start-ups developing solutions to local agricultural and environmental challenges. Innovations include non-chemical preservation methods to extend the shelf life of produce, groundnut pluckers to ease manual labour for women, and water retention systems to sustain soil moisture during dry periods.

‘These efforts transform agricultural practices while fostering entrepreneurship,’ he says. Start-ups led by university students and recent graduates bring fresh ideas to tackle systemic issues. Proven solutions are scaled to larger markets, creating a ripple effect that inspires broader ecosystem participation. ‘This positions start-ups as first movers, building sustainable models while encouraging others to innovate,’ he adds.

While these interventions are promising, scaling them beyond pilot projects remains a significant challenge, particularly with farmers who have faced failed initiatives. ‘Adoption does not happen overnight,’ Rupanga explains. ‘Farmers need to see results before they are willing to take risks.’

To address this, the programme leverages finance and private-sector partnerships. ‘Our strategy involves de-risking private-sector investment,’ he adds. Agri-businesses working with smallholder farmers receive technical support and financial incentives to test innovative models, sharing initial risks to demonstrate the value of these markets.

The ripple effects of these efforts extend far beyond individual farmers—improved access to quality seeds and tools benefits ancillary industries like fertiliser suppliers and transport companies. Financial institutions, recognising increased productivity, are beginning to provide credit and insurance tailored to smallholder farmers. ‘Solving one part of the puzzle creates opportunities across the entire value chain,’ Rupanga notes. ‘It is a ripple effect that benefits everyone involved.’

Across the border in Kenya, agribusinesses and entrepreneurs face a similar challenge: securing capital to scale and thrive. Despite agriculture’s transformative potential, the sector remains underfunded and deemed risky by financiers due to its dependence on climate-sensitive cycles. The solution lies not just in farms or factories but in the financial systems that connect them to opportunity.

These challenges share a critical solution: the need to bridge the gap between capital and opportunity through innovative partnerships. ‘The goal is not fixing isolated problems,’ explains George Mbithi, former Communications Director for USAID’s Kenya Investment Mechanism (KIM). ‘It is about building ecosystems where businesses, governments, and investors grow sustainably.’

Strategic Investment

Implemented by The Palladium Group and funded by USAID, KIM has mobilised over USD 650 million in private-sector investments—surpassing its USD 520 million target. By addressing systemic barriers, KIM has transformed access to financing for agriculture, women-owned enterprises, and youth-led ventures, reshaping Kenya’s economic landscape.

At its inception, KIM set an ambitious goal: mobilise USD 400 million in private-sector investments within five years. This target was later increased to USD 520 million with the inclusion of sectors like health, energy, and women’s economic empowerment. However, the challenges were immediate. Financial institutions viewed agriculture as excessively risky, and small and medium enterprises (SMEs) struggled to make their business cases attractive to potential investors.

‘In our first year, we mobilised almost nothing,’ George recalls. ‘There was deep mistrust. Financial institutions saw agriculture as too unpredictable, while SMEs lacked the skills to present their businesses in investor-friendly ways.’ The programme’s success hinged on its ability to build trust.

Financial institutions received training in value chain financing, enabling them to tailor products to the distinct cash flow cycles of specific agricultural sectors, such as avocados and mangoes. ‘Financiers needed to stop viewing agriculture as a single, high-risk entity,’ George explains. ‘By focusing on value chains, they could pinpoint real opportunities and develop strategies to mitigate risks.’

KIM adopted an innovative pay-for-results model to drive impact. Business advisors were tasked with preparing SMEs for investment, earning fees only when they successfully secured funding for their clients. This results-based approach ensured advisors focused on tangible outcomes, creating a steady pipeline of investor-ready businesses.

Similarly, financial institutions received incentive fees upon disbursing funds to SMEs in the targeted sectors. As trust between business advisors and financiers grew, facilitated by Palladium’s strategic efforts, the programme began to deliver measurable results. Advisors guided businesses in refining their investment proposals, while financiers became more confident in the viability of agribusinesses and other underserved sectors.

The model worked. ‘By the second year, we had a solid pipeline of investor-ready businesses, proving to banks and impact investors that agribusinesses could be reliable and profitable partners,’ points out George. One of KIM’s notable success was facilitating a USD seven million investment by Regen Organics to establish an organic fertiliser factory in Kakamega County.

This achievement required a multi-faceted approach, including negotiations between Regen Organics and the Kakamega County government to secure land for the factory. ‘Regen Organics was at a critical juncture,’ he explains. ‘They had successfully obtained patient capital—something traditional banks rarely provide—and now needed land to scale their operations. Negotiating with local government was key to unlocking this opportunity.’

By facilitating negotiations and involving legal experts, KIM played a pivotal role in enabling Regen Organics to secure the land necessary for their investment. Once operational, the factory generated over 1,000 jobs in Kakamega County and benefitted thousands of smallholder farmers by providing access to organic fertiliser. This eco-friendly solution enhances agricultural yields and promotes environmental sustainability.

‘This was not just a win for Regen Organics and the Kakamega County Government,’ George highlights. ‘It demonstrated the power of public-private collaboration when driven by a shared vision. This model can inspire other counties in Kenya to attract private investors.’

However, despite these milestones, challenges persist. Scaling such interventions requires ongoing effort and alignment among stakeholders. KIM’s initial setbacks underscored the critical need for trust-building and tailoring solutions to the unique contexts of local communities. ‘Kenya is not Ghana or Uganda,’ George remarks. ‘You cannot just copy-paste solutions. We had to adapt our approach to fit Kenya’s unique economic and cultural landscape.’

Another critical takeaway from KIM’s efforts is the value of transparency. Investors’ hesitancy often stems from perceptions of inefficiency within SMEs. By emphasising due diligence and building business capacities to meet international standards, KIM addressed these concerns, fostering trust and opening new avenues for investment.

By aligning private sector interests with social impact goals, KIM proved that capital mobilisation could drive transformative change. ‘There is so much entrepreneurial spirit in Africa,’ George observes. ‘The challenge is creating ecosystems where that energy can flourish, supported by trust, transparency, and targeted investment.’

Looking forward, sustainability must become the central focus. Programmes like KIM have demonstrated how to catalyse change, but long-term success hinges on empowering local governments, financial institutions, and entrepreneurs to carry the torch. ‘The resources are out there,’ George concludes. ‘The question is whether we can create systems that unlock them.’